Make The Right Choice Part II: Choose A Quality Franchise!

Once you’ve decided you want to start a business of your own with a franchise, the question becomes: How do I choose the best franchise for me? Related: Everything You Need To Know To Succeed In Business Your investigation of the wide world of franchising, in which a variety of businesses offer various levels of brand identity, support, and training, is the most important part of your purchase. Only with real knowledge can you get beyond the superficial and learn about enterprises that offer the best opportunities to suit your own particular set of skills and interests. The fact is not all franchises are created equal, and some have far better training and support services that can make the difference between success and failure. To ensure you make the most educated selection, your evaluation of the quality of the franchises that most interest you is paramount. (See Part I on Making the Right Choice)

5 Steps To Selecting A Quality Franchise

1. Consult a franchise coach.

You can benefit from the expertise of these professionals who have vetted thousands of franchises, eliminating those that are not first-tier, so they can recommend franchises with the greatest chances for success. While you should conduct your own research as well, you should use every resource available to you, and a good franchise coach can save you a lot of time and headaches later on. Best of all, this resource is free.

2. Conduct a review of franchise types.

You will find a list of the 75 industries represented in the huge world of franchising at the International Franchise Association website at www.franchise.org. Keep your mind open as you review various franchise types that include tutoring centers, an array of B2B services, fitness centers, storage facilities, as well as the most well-known restaurants and more. You will find opportunities that allow you to work largely on your own, part time or build a multi-franchise operation.

3. Read the Franchise Disclosure Document.

All franchises are required by federal law to disclose certain aspects of their businesses. These documents, written in everyday English, can be obtained from the franchises that most interest you. You should zero in on some key nuggets:

  • The business history — How long has the franchise been in operation?
  • Litigation history — A record of lawsuits would be a red flag.
  • Any earnings claims? — though this is an optional item
  • Financial statements of the franchisor – Are they solvent?
  • A full accounting of your costs, including outlays necessary to set up the business
  • A list of franchisees.

4. Interview franchisees.

Once you have the list from the FDD, you should start calling franchisees. You can learn from no better source how good the franchisor’s system works. Is their support and training excellent, merely sufficient or inadequate. Would they purchase the franchise again? You should also make a point to talk to franchisees who have not been successful. Find out what went wrong. Remember, sometimes people choose franchises that don’t suit their expertise, interests or personality, and this can cause failure as much as problems stemming from the franchisor.

5. Talk to and meet representatives from the franchisor.

As part of your preparation, you will talk to representatives from the franchise. If you’ve moved farther along the process, franchisors will provide written materials to help educate you about their system, as well as one-on-one meetings with executives, either on the phone or in person. This process culminates in Franchise Discovery Day, where you visit a franchise, meet the support staff and make your final decision on whether this franchise is for you. All along the way, you will have ample opportunity to reassess and decide that this franchise isn’t for you, either because you don’t connect to the business or its executives. This in-depth process ideally will lead you to the business of your dreams. But before you sign on any dotted line, you should also consult a franchise attorney and accountant. While a franchise offers many great benefits, you have to make the right match to make it work for you. Check out Part I:Ready For A Franchise? Maximize Your Success By Making The Right Choice!

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at dcitrenbaum@gmail.com or at (484) 278-5489.  

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Ready For A Franchise? Maximize Your Success By Making The Right Choice!

You’ve made the decision to buy a franchise. The key question then becomes which one of the 3,000 franchises in the marketplace is right for you. The choice will make all the difference on whether your new business limps along or flourishes. You can maximize your chance for success by using two critical criteria.

  • Determine whether the role of the owner in the business suits your particular strengths and
  • Assess the quality of the franchise.

The beginning of your process will consist of exploring franchise types (there are more than you think), assessing your own strengths, and developing a list of possible options to investigate further. One of the key things you need to find out is what exactly are the owner’s job responsibilities for each franchise.

The Role Of The Franchise Owner

What the owner does may be drastically different from what you may think. For example, maybe you’ve been thinking how you might like to open a little bakery or a little cafe because you love to bake and would love to have all your friends drop by for socializing and tea. But once you look more closely at what the owner of such a franchise does, you’ll find the owner is mainly responsible for managing employees and marketing, focusing on building a customer base to grow revenue. Generally, the number one goal of the owner is to build the business, which allows you to earn a good income, have happy, productive employees and an ever-expanding customer base. On the flip side, you may find yourself veering away from types of businesses that at first sound unappealing, such as cleaning services — since you don’t want to spend your days scrubbing and polishing — but the owners of firms like this should not be doing the cleaning work. Your job is to hire good, reliable employees and create a solid customer base for repeat business. Franchise companies will tell you upfront what the role of the owner is in the franchise. And you can further assess this by interviewing franchisees, both successful and unsuccessful ones, to learn about what their day-to-day responsibilities are. Bottom line: Don’t make your choice based on preconceived notions about the business.

Match the role of the owner with your skills and experience.

So now that you know the owner’s job profile, the question becomes, does this suit you? You want to create a realistic appraisal of your skills and experience so you get into a business where you can enjoy your work and apply your talent and skills for long-term success. Do a quick inventory of your skills and take into account your interests, since when you make a choice to build a business of your own, you want to like going to work! Are you proficient in and do you like:

  • Selling, which always includes selling yourself, as well as your products or services?
  • Managing people? Do you think you could learn how to do it?
  • Working with people or do you prefer working on your own?
  • Marketing, which might include advertising as well as making presentations?
  • Getting into the details or do you prefer to delegate?
  • Networking — creating links with people who can help you grow your business?

Once you get a handle on what types of activities you excel in and enjoy, you will have the information you need to make a good match with a franchise. Your research will tell you which franchises require which areas of expertise from the owner. Remember one of the attributes of a good franchise is its training and ongoing support. So even if you’re not sure you know how to do something, if you have a feeling you could learn — and you might want to ask friends for their views — you might still go ahead. And, of course, you won’t be buying a franchise that you haven’t fully vetted for quality. Stay tuned for Part II on making the right choice.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at dcitrenbaum@gmail.com or at (484) 278-5489. 

Advantage of a Franchise 101: A Proven System!

When you’re sitting at your desk dreaming of starting your own business, the barriers may seem as daunting as a track of high hurdles. The good news is there’s an efficient way to help you raise your odds for success: a franchise system.

With a great franchise, you gain the collective experiences of many successful business owners who over the years have helped the franchisor perfect a system, the proven procedures that provide a roadmap to long-term success.

The beauty of the system is it’s all of a piece. You follow the franchisor’s guidelines for everything from how to set up your shop, to how to train employees to how much money you should have on hand to get you through the initial startup phase. As you struggle to learn the system, a good franchise will offer lots of training and ongoing support to get you across the finish line.

While, as with everything in life, there are no guarantees, if you do your research and select a franchise that matches your skills and interest, you have a far greater chance of success than with almost any other type of new business.

Much expertise has gone into developing this system, part of the strategic positioning of the brand, but it does no good if the franchisee decides to veer away from it. So while a franchise system is one of the best ways to lower the risk for starting a business, the one rule of thumb is you must be willing and eager to follow the system. Or don’t buy a franchise.

The Beauty of a Franchise System

Upfront training

This can mean more than 50 hours in classroom learning plus more instruction on the job for you and your employees.

Ongoing support

An answer to a question is a mere phone call away. A quality franchise company will have experts to support all of your most crucial needs, whether those are staffing and training, or advertising, or sourcing inventory.

Guidelines for setting up an office/store

The franchisor will have exact specifications for the type of furniture, fixtures and supplies to purchase — as well as the number of employees you will need.

Advertising/Marketing Program

Some franchisors have national ad campaigns for which you will have to contribute, and others will help you run a local marketing program. Either way, you can be sure the franchisor will have established, proven advertising programs for you to use.

Support on leasing

Many franchisors will help you not only choose a location but also negotiate a lease. The franchisor will know what demographics make a superior location. They will share that info with you because they want your business to be in a great location.,

If you think of the system as a set of wings that will enable to you to fly, rather than a set of constraints, you will be on your way to success. But if you’re the type of person who likes to make it up as you go along, you may want to consider an independent business instead. Only then, you’ll have to develop a system of your own.

Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at dcitrenbaum@gmail.com or at (484)278-4589.

© Dan Citrenbaum 2020

Shorten the Learning Curve: Start Your Own Business with a Franchise Tips from a Top Franchisee

Bob Riesenbach happily left behind corporate America to forge his own path building a business of his own, even if that has meant working as many hours as he did in corporate America.

Is there a catch? Not when you love what you do and know it’s all for you!

Mirroring the desires of many MBA-ers of his generation, Riesenbach always dreamed of starting his own business, and so, after 23 years of working for big corporations, he left his marketing position at a large retail chain of convenience stores and ventured out on his own without a safety net.

“I was tired of bureaucracy and politics,” he said, so he started researching his options. While he started looking at businesses for sale, he didn’t find much in his area beyond pizza joints and bars.

Before long, he decided a franchise made the most sense because “I didn’t want to start from scratch, and I thought I could learn from other people’s experiences,” he said.

After meeting a franchise coach at a Philadelphia area networking meeting, Riesenbach started looking closely at several franchise possibilities, eventually choosing to buy a franchise that took the most advantage of the skills he had spent his career acquiring.

Almost four years down the road, Riesenbach is happily building his new business, CMIT Solutions of Cherry Hill, a provider of information technology services for small and mid-sized businesses, with the support of a strong network of fellow franchisees.

“The strength of the organization comes from our partnership with other owners,” Riesenbach explained. The franchisor sets up formal networking groups, and he talks to fellow owners at least once a week.

Advantages of a franchise include fully vetted resources, such as vendors, marketing services, and annual conventions. Franchisees have the ability to leverage the size of their network to attain for clients discounted prices on services from vendors, such as Dell, that would likely not be available to a small independent business.

Riesenbach’s company continues to grow. He has been honored by his franchisor as Rookie of the Year, and has also received honors from other local business organizations, including the Philadelphia Business Journal.

Riesenbachs top tips for prospective franchisees:

  1. Look for a good match with your skill level and interests.
  2. Talk to a lot of existing franchise owners, whose contact information can be found in the Franchise Disclosure Document. Don’t only talk to those the franchisor may recommend.
  3. When people say “Why not just do it on your own, so you don’t have to pay royalties,” ignore those people… I feel I’m getting a lot more value than I’m paying for.
  4. Have realistic expectations – Know it takes a while to get a new business going.
  5. Be prepared to work hard.
  6. Ready to make your dream of becoming an entrepreneur come true?

Get your free evaluation today!

Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at dcitrenbaum@gmail.com or at (484) 278-4589.

© Dan Citrenbaum 2020

Lack Experience In Your Preferred Business? Try A Franchise

So, you want to start a business, but feel like you’re running into a brick wall at every turn. Don’t despair, a franchise operation may be just the ticket to help you fill a local market niche. While you pay a franchisor a start-up fee — which usually ranges from $35,000 to $60,000 — you get training, proven systems for profitability, expert marketing, plus ongoing support to help you overcome bumps in the road along the way. Most entrepreneurs who buy a franchise have no experience in that industry. But thanks to the support and training they receive from the franchisor, they can build successful businesses that outperform even established independent competitors.

Advantages Of A Franchise

In our current economic environment, little mom and pops often find it tough to compete, and a proven system can offer great benefits. You can start your own business with a franchise and still have lots of the same perks as an independent business owner — plus many advantages they don’t have.

A Proven System

A franchise company has used years of experience to figure out what works and what doesn’t. They know how many employees you need and what type of advertising works best. And a franchise company wants you to succeed — to bolster their own bottom line.

Support And Training

Most franchise companies have employees whose sole task is to support their franchisees in such areas as IT, sales, advertising, accounting and human resources. Independent businesses have to hire individual experts for support, and those costs can add up.

A Strong Record Of Success

A study on profitability by the U.S. Small Business Administration found that the average franchise had five times the first-year revenue as the average independent business. At our firm, new franchisees have a 94% success rate, but the key to success is research, research, research, figuring out which franchise is right for you and which franchises offer the best chance of success.

A Well-Documented Track Record

Since so many others will have walked the path on which you’re setting forth, you have all the information you need to help you succeed. Much of it is provided in the Franchise Disclosure Document. And unlike independent businesses, which have to make educated guesses, you have a network of other franchisees to help guide the way.

Ready to make your dream of becoming an entrepreneur come true? Get your free evaluation today! Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a business coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at dcitrenbaum@gmail.com or at (484) 278-5489.